Shire of Esperance approves ‘prudent’ 2024-25 budget with 5.5 per cent rate hike to counter rising costs

The Shire of Esperance council has approved a “prudent” 2024-25 budget which will see gross rental value properties cop a 5.5 per cent rates hike and unimproved value properties a 6.5 per cent rise. A new volunteer firefighter shed, airport improvements, road works, a waste management facility build and a stadium replacement are some of the major projects funded in the shire’s 2024-25 budget, which was passed at a special council meeting this week. The budget plans for expenditure of $67.2 million — up $6.8m from the previous year’s outlay as the shire feels the pinch of increases in costs of employees, materials, contracts and utilities. Forecast operating revenue of $50.1m is down $3.4m from the previous financial year after a drop in income from grants, subsidies and interest. Despite less revenue, the 2024-25 budget leaves the shire $3.1m in the black due largely to a $20.1m contribution from capital grants and subsidies. Shire president Ron Chambers said he was confident the budget would bring the best possible value to the community. “The shire is the same as every other business: facing continual cost increases — and we know the community are feeling the pinch as well,” he said. “Council constantly examines everything the shire does, where efficiencies can be gained and what must continue untouched, but this becomes a key focus at budget time. “I’m confident we’ve put together a budget that will get the best possible value for our community from the resources available to us.” Rates rises The largest source of income for the shire is rates, with this year’s expected rates revenue being $26.9 million — up $1.4m from last year. The increase is reflected in the rate hike of 5.5 per cent for properties categorised under gross rental value and 6.5 per cent for unimproved value properties. The shire said the rate increase would be higher for some GRV property owners depending on the outcomes of revaluations by the Office of the Valuer-General this year. Mr Chambers said the rate increase was a “real achievement” as the shire was under the strain of cost increases to core services such as utilities and insurance of up to between 7 and 10 per cent. “The ability to hold successive rate increases to moderate amounts demonstrates the shire’s good financial planning and management,” he said. “This is a prudent budget maintaining services our community needs while still working on improvements and efficiencies.” Shire chief executive Shane Burge said the shire had worked to minimise rates. “We’re very aware of the financial pressure our community are under,” Mr Burge said. “I want to make sure everyone is aware that besides the option to pay in instalments, our ratepayers can also opt to work within their own budgets and set up pre-payment by direct debit. “That way, people can get their rates paid off beforehand, or at least get the bill reduced a bit.” Major investments Road renewals and improvements are a key target in the new budget, with $17.2m dedicated to works on the road network. An allocation of $4.3m will fund the first stage of construction for the Myrup Waste Management Facility, which when complete will include modern processing infrastructure expected to divert substantial amounts of waste from landfill. The replacement of the aged Graham Mackenzie Stadium is set to offer facilities unique in Esperance, including vinyl floors and an indoor turf floor, with $4.9m dedicated to the project. The shire dedicated $1.7m to land development and $1.6m to a building maintenance program, while $70,000 was allocated to airport upgrades. The Cascade Volunteer Bush Fire Brigade Shed project has been allocated $930,000, with the building to house appliances, offer training space and act as an incident control centre when needed. A $315,000 project will replace a ripple sound ceiling system at the Bay of Isles Leisure Centre aquatic area which was installed in 1999 with a 20-year expected lifespan. Mr Burge said every item in the 2024-25 budget had been examined carefully for its value to the community. “This budget plans responsibly for the future, allowing us to afford the projects our community has told us they want actioned, laid out in the long-term financial plan,” he said. “The aim of this gradual preparation is to avoid having large rates increases in the future. “We’re working on a range of exciting projects this year and we’re all looking forward to delivering them to the community.”